- Private mortgage insurance: If you only provide a small down payment, you may be required to purchase private mortgage insurance. Sometimes this means you are required to pay a full year’s worth at time of purchase, or it will be rolled into your monthly payment.
- Homeowner’s insurance: When borrowing money to purchase a home, insurance is required. In many cases, this means buying a policy before closing on the home.
- Title insurance: This insurance covers you in the unlikely case that the person who sold you the house didn’t actually own it or if information on the title was false.
- Appraisal fees: An appraisal is needed so that a current fair market value for your home can be established for tax purposes.
- Escrow fees: During the closing process, an escrow account will usually hold the money while the buyer and seller finalize the agreement. In addition, you’ll probably have a portion of your monthly mortgage payment go into escrow in order to pay for property taxes and insurance.
- Points or origination fees: An origination fee is paid to the bank or lender for their services in creating the loan. A point is 1 percent of the loan, and is often worked into the total cost of the loan.
- Credit report fees: In order to secure a loan, the lender will require a verified credit report.
- Document preparation fees: The lender or broker will usually have a fee to cover the preparation of the required documents for the loan.
- Survey fee: If an existing survey of the land cannot be obtained, a new survey will have to be conducted in order to determine exact boundaries of the property.
- Pest or mold inspection: While not generally required for a brand new home, the purchase of an older home may require an inspection for pests such as termites as well as mold. This requirement can vary by location.
- Property taxes: In some cases, you may owe some property taxes immediately if the seller has already paid taxes for a time period where you will be the owner. Also, there may be other municipal taxes or fees for sewer or water that need to be taken care of.
- State recording fees: Depending on where you live, there may be a fee required for recording and holding the information regarding the sale.
Source CNN Money